JCB to cut 290 jobs

'Rapid deterioration' in construction market blamed for redundancies

JCB has warned it is to cut 290 jobs as a result of the “rapid deterioration” of the global construction equipment market.

The slowdown, which started in the summer, has resulted in a big fall in machine orders from customers, said JCB.

The announcement follows news in September that up to 400 UK staff positions at JCB were at risk of redundancy as a result of the economic situation. Consultations over those redundancies continue.

GMB, the union for staff at JCB, has started a 45 day consultation with the company over the 290 proposed redundancies and said it will “work hard to formulate a plan to mitigate the impact of the proposed redundancies”.

Gordon Richardson, GMB works convenor for JCB, said: “This news is obviously very disappointing but it has been apparent now for some time that global markets have been declining.”

Graeme Macdonald, chief executive at JCB, said: “Manufacturers in the construction equipment industry are currently facing very tough trading conditions and we have to react to the current market reality to protect the long-term future of the business.

“Regrettably this means taking the very difficult decision to reduce the number of shop floor positions by up to 290 across the UK. As the global economy shows no sign of improving, the short-term outlook remains very challenging.”

JCB said that in the first six months of the year, the market in Russia has dropped by 70%, Brazil by 36% and China by 47%. Parts of Europe are also struggling, with France down by 26%. In addition the strong growth in the UK and North America has softened due to a fall in market confidence over the summer, which has been prompted to an extent by low oil and commodity prices..

The jobs warning from JCB comes a day after Michelin said it was shutting its tyre factory in County Antrim with the loss of 860 jobs.